Title

PENSIONS

Beware the pension cliff edge

A Ministry of Housing, Communities and Local Government consultation suggests that two groups of staff made redundant because of local government reorganisation might face a hit to their pension. Ian Miller highlights the risks ahead.

© Tang Yang Song / Shutterstock

A nyone who works in the 20 shire counties facing reorganisation in 2028 and who was born between 6 April 1971 and 5 April 1973 might want to study the consultation document entitled Local Government Pension Scheme in England and Wales: Scheme improvements (access and protections). Consultation closes on 22 December (colleagues of that age group in Surrey can breathe more easily, perhaps, as reorganisation will happen on 1 April 2027 – that is, so long as any redundancy arising from reorganisation takes effect no later than 5 April 2028).

Why? The Finance Act 2022 has increased the Normal Minimum Pension Age (NMPA) from 55 to 57 with effect from 6 April 2028. The Ministry of Housing, Communities and Local Government (MHCLG) is consulting on changes to the local government pension scheme (LGPS) to give effect to this.

Ian Miller

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